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    Blueocean Blueocean Presentation Transcript

    • Blue Ocean Strategy Jamie Park COM 459
      • Value Innovation
      • Save costs by eliminating and reducing the factors an industry competes on.
      • Value is raised by creating elements never before offered in the industry.
      Value Innovation Costs Buyer Value
    • Red Ocean vs. Blue Ocean Strategy Align the whole system of a firm’s activities in pursuit of differentiation and low cost. Align the whole system of a firm’s activities with it’s strategic choice of differentiation or low cost. Break the value-cost trade-off. Make the value-cost trade-off. Capture and create new demand. Exploit existing demand. Make the competition irrelevant. Beat the competition. Create uncontested market space. Compete in existing market space. Blue Ocean Red Ocean
    • The Six Principles of Blue Ocean Strategy Management risk Build execution into strategy Organizational risk Overcome key organizational hurdles Execution principles Business model risk Get the strategic sequence right Scale risk Reach beyond existing demand Planning risk Focus on the big picture, not the numbers Search risk Reconstruct market boundaries Risk factor each principle attenuates Formulation principles
    • Strategy Canvas low high Industry Variables
    • The Four Actions Framework A new value curve Eliminate the factors the industry takes for granted Raise factors well above industries standard Reduce factors well below industries standard Create new factors never before offered in the industry
    • Create * * * Reduce * * * Raise * * * Eliminate * * *
    • Four Steps of Visualizing
      • Distribute your before-and-after strategic profiles on one page for easy comparison
      • Support only those projects and operational moves that allow your company to close gaps and actualize the new strategy
      • Draw your “to be” canvas based on insights from field observations
      • Get feedback on alternative strategy canvases from customers, competitors’ customers, and non-customers
      • Use feedback to build the best “to be” future strategy
      • Go into the field to explore the six paths to creating blue oceans
      • Observe the distinctive advantages of alternative products and services
      • See which factors you should eliminate, create or change
      • Compare your business with your competitors’ by drawing your “as is” canvas
      • See where your strategy needs to change
      4. Visual Communication 3. Visual Strategy Fair 2. Visual Exploration 1. Visual Awakening
    • 3 Tiers of Customers
      • There is a universe of noncustomers which can be turned into customers to offer a big blue ocean market.
        • 1st tier: “Soon-to-be” noncustomers who are on the edge of your market
        • 2nd tier: “Refusing” noncustomers who consciously choose against your market
        • 3rd tier: “Unexplored” noncustomers who are in markets distant from yours
      1st 2nd 3rd